National Payments Corporation of India (NPCI)

National Payments Corporation of India (NPCI) is an organisation promoted by ten banks with the objective of stimulating and integrating digital payment system in India.  The Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) extend required support and guidance to NPCI.  It acts as an umbrella organization for all retail payment systems in India. 

NPCI was incorporated in December 2008 under the companies Act 1956, with an authorised capital of Rs. 300 Cr. The aim was creating a cost effective infrastructure capable of handling high volume of transactions in India at a nominal cost. 

During last five years, National Payments Corporation of India has grown tremendously. NPCI now handles 20 million transactions per day compared to the 2 million, five years back.  

What are the various products and services of NPCI?

The products and services of National Payments Corporation of India include:

National Financial Switch
Unified Payment Interface (UPI)
Immediate Payment Service (IMPS)
*99# (USSD) services
National Automated Clearing House
Cheque Truncation System
Aadhar Enabled Payment System (AEPS)
Rupay cards and settlement
Bharat Bill Payment System (BBPS)

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It started with the service of switching of inter-bank ATM transactions. 100 member banks are using this network at present.  Truncated cheque clearing method and Automated Clearing House were introduced thereafter.  Immediate Payment Service (IMPS) and Rupay card network became successful because of the initiatives and follow up of NPCI. As of now, around 25 Million bank customers own Rupay card. 

Now, India has a domestic card payment network which is capable of competing with the international card networks of VISA and MASTERCARD.  Unified Payment System (UPI) has emerged as game changer of payment systems in India. IMPS, Rupay card and UPI have become disruptive innovations in India. 

NPCI future ahead…

India is aiming to become a less cash economy. The country now focuses more on  digital payments. Two schemes, Lucky Grahak Yojana ( for consumers) and Digi Dhan Vyapar Yojana (for merchants and traders) have been announced by Government of India to promote digital payments. Digital India concept is getting momentum. With all these initiatives, National Payments Corporation of India definitely has a major role to play in coming years. 

Stated vision of NPCI is “ To be the best payment network globally”. The mission statement reads “Touching every Indian with one or other payment services”.  Every Indian wants NPCI to fulfil both its Mission and Vision. 

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